10 Facts: Car Insurance Premiums

The following 10 facts about insurance will keep you up to date with insurance news and may also help you to save money.

1 Car Insurance premiums: Type of car

The type of car you drive affects your car insurance premiums. If you drive a car with SPORT associated with the make and model, your insurance premiums will be higher.

2 Car Insurance Premiums: New Car

Your car insurance premiums will increase when you buy a new car. This is due to the fact that the car is worth more and if it is financed, you’ll have to get Comprehensive insurance.

3 Car Insurance premiums: Online insurance

Car Insurance premiums have dropped since prospective insurance buyers have the ability to shop for insurance online. The fact that people can get numerous quotes in a short time resulted in more competition between Insurance Companies.

4 Car Insurance premiums: Married drivers

Statistics show that married drivers have fewer accidents than single drivers. Married drivers are therefore assessed as being a lower risk. Most Insurance Companies offer a discount on car insurance premiums for married drivers.

5 Car Insurance premiums: Telematics & UBI

Traditionally, premiums used to be based on statistics alone and drivers sharing similar features like gender, age, job, type of car and area of residence would pay roughly the same premiums.

Telematics and User Based Insurance (UBI) have completely changed the scene and now allow for individualised premiums based on driver behavior.

6 Car Insurance premiums: Gender

Female drivers may pay up to 29% less on car insurance due to the fact that they are a lower risk to Insurance Companies. Men are classified as higher risk drivers, because they are more prone to speeding, reckless driving, road rage and are involved in more serious accidents than women.

7 Car Insurance Premiums: Vehicle ownership

The registered owner of a car is regarded as the responsible party concerning fines and accidents. It is of vital importance to transfer ownership immediately after selling your vehicle.

8 Car Insurance Premiums: Young Drivers

Younger drivers pay higher insurance premiums, because Insurance Companies view them as less experienced drivers and also more prone to speeding, careless driving and DUI (driving under the influence).

Be sure to inform your Insurance Provider when you turn 25, because they will not automatically lower your premiums.

9 Car Insurance Premiums: Monthly vs Annually

You pay less on insurance when you pay annually. If it as all possible, change your method of payment from monthly to annual.